Commercial salad makers Hicks, along with a major salad producer, are selling off some of their remaining stock and selling it at a profit.
The sale of their existing stock has netted the company more than $5.3 million.
Commercial Salad Maker founder Kevin Kelly said the company was in “total disarray” and was selling off its remaining inventory, while selling off a significant chunk of its production capacity.
“We were not at full capacity, so that was a major challenge,” Mr Kelly said.
“As we are now selling off the remaining inventory of the company we are in total disarray.”
Mr Kelly was joined in his presentation by Mr Paul Foskett, vice president of food and beverage at the Australian Beverage Association.
“It is a pretty serious situation, so we’ve been trying to figure out what we need to do,” he said.
The Australian Beverages Association says the sale of some of the bulk of the commercial salad market was in March, when it was about $30 million worth.
Commercial salad producers were selling off surplus stock in an attempt to meet growing consumer demand.
“The commercial salad industry is one of the fastest growing segments of the Australian economy,” Mr Foschett said.
Commercial food processors are in a similar situation.
They have a supply chain, a sales model and a consumer base that is already growing.
The market is “dwindling” and “there’s a lot of pressure on the industry and they need to step up their game,” Mr Gennaro said.
Mr Kelly and Mr Fuschett also spoke about the impact of globalisation on the Australian food system.
They also talked about the importance of educating the public about the benefits of organic and sustainable food.
The commercial salad makers are still in the process of identifying the next product category they want to launch in the market, but they have a number of other product categories on the table including a salad bar, a frozen food option and a vegetable salad bar.
Mr Fusschett says he would like to see the commercial vegetable salad makers market expand in Australia.
“I would like them to start expanding in Australia, but we need a bigger and bigger base in Australia,” he told ABC Breakfast.